CNI concerned at lending rate hike

KATHMANDU, April 20: A delegation of Confederation of Nepalese Industries (CNI) on Wednesday met the acting governor of Nepal Rastra Bank (NRB), Chintamani Shiwakoti, and expressed its concern over recent rise on bank lending rates.

The delegation led by CNI Vice President Rajesh Kumar Agrawal urged the central bank to address the lendable fund crunch and rising lending rates. It argued that rise in lending rates could affect the competitiveness of industrial sector and decelerate economic growth, a statement issued by CNI said.

"There could be contraction in industrial output and decline in employment opportunities if the problem is not addressed immediately," the delegation told the acting NRB governor, according to the statement.

CNI has also suggested short-term and long-term solutions to the central bank to address the recurring credit crunch problem in the financial sector. It has urged the central bank to strengthen the overall financial sector, address the problem of shortage of lendable fund and high interest rate spread seen in the financial sector since September last year, provide funds to the private sector in affordable rates for economic development as well as provide appropriate interest rates to depositors, the statement added.